Woodside updates cost expectations ahead of first-half results
Woodside flagged anticipated first-half production costs of $710m to $780m in an update on Thursday, with royalties, excise and levies expected to amount to $180m to $210m.
The company said the depreciation and amortisation of oil and gas properties was projected to be between $1.85bn and $1.95bn, not including depreciation of lease assets.
Other income was estimated to lie between $250m and $380m, bolstered by profits from the sell-down of Woodside’s Scarborough project to LNG Japan.
Net finance costs were forecast to range from $50m to $55m.
A significant point was the projected income tax expense, with the statutory income tax expense expected to be between $100m and $200m, while the underlying expense was forecasted at $400m to $500m.
The firm said the statutory income tax expense reflected the first-time recognition of a net deferred tax asset related to the Sangomar project, along with other tax accounting adjustments.
It said the tax adjustments were anticipated to substantially reduce Woodside’s effective income tax rate for the first half of 2024, making it considerably lower than the full-year 2023 statutory and underlying rates, which were 27.5% and 31%, respectively.
Woodside said the adjustments would not, however, affect its tax payments for the period.
At 0841 BST, shares in Woodside Energy Group were up 0.31% in London, at 1,308p.
Reporting by Josh White for Sharecast.com.